StartUp Monday: Jamboo - The Digital Banking Platform for the African Diaspora

STARTUP MONDAY

Editor’s Note

Hey there African Entrepreneur!

Today is day number 317 of 365. There are 48 days until the year draws to a close. But don’t let that discourage you from pursuing your 2023 resolutions.

A lot can still be achieved in the remaining days. There is still time to work on yourself, your business and your aspirations.

We still have 1152 hours. This might seem too short but this is how I look at it: We have 1152 60-minute sessions to make strategic decisions and put them into action.

Start Now
Start Scared
Start before it’s Perfect
Start Nervous
Just Start

You don’t need 48 days to work on improving yourself or your business, you only need a new mindset.

That is why for our Startup Monday we have chosen a startup that is making waves before it has even launched into the mainstream market.

Our startup of the week will show you that it is okay to start scared; and that if you have a plan you can attract the right personnel and capital.

All you have to do is start.

Be inspired and happy hustlin’

STARTUP OF THE WEEK: JAMBOO

Startup Spotlight

Jamboo: The Digital Banking Platform for the African Diaspora

Are you an African migrant living in the UK or Europe?

Do you want to access banking and investment opportunities in Africa?

Do you want to support the development and growth of your home continent?

If you answered yes to any of these questions, then you might be interested in Jamboo!

What is Jamboo?

Jamboo is a financial services company specializing in banking, international transfers and investment opportunities for the African Diaspora residing in the UK and Europe.

Through its digital banking platform, Jamboo's vision is to provide banking and investment opportunities for the African diaspora in the UK and Europe, who often face challenges and barriers when trying to access financial services in Africa. Jamboo wants to bridge the gap between the African diaspora and the African continent.

According to its pitch deck, African migrants are the main financiers of Africa. In recent years, remittance inflows to sub-Saharan Africa have increased significantly, surpassing foreign direct investment (FDI) and official aid.

How does Jamboo work?

Jamboo embraces a lifestyle business model which offers products as such banking, investment, wealth management, capital repatriation, payment solutions and various alternative asset investment solutions.

Upon launch, Jamboo will connect its customers with vetted and verified investment opportunities in Africa, through its 100% digital platform. Jamboo's customers can choose from a range of sectors and projects, including marketplace lending, Real Estate, Renewable Energy and the Stock Market.

Jamboo's customers can also enjoy other benefits, such as:

• Low fees and competitive exchange rates

• Secure and transparent transactions

• Access to a network of experts and advisers

• Social and environmental impact

• Financial inclusion and empowerment

• Other financial services, such as savings, loans, insurance, and remittances

Joining Jamboo

Jamboo is currently crowdfunding from investors through its website. It is offering a limited number of shares to early investors, who will enjoy exclusive benefits and rewards, such as:

• Equity ownership and dividends

• Priority access and discounts

Jamboo has so far crowdfunded over £1 million and is quickly closing in on its target of £1.5 million.

As things look, Jamboo appears to be much more than just a digital banking platform. It is a movement and a community of people who share a common vision and passion for Africa.

Founder Spotlight

Who is behind Jamboo?

Jamboo is led by a team of experienced and passionate professionals, who have a wealth of knowledge and expertise in finance, technology, and development.

Takwana Tyaranini - Co-Founder and CEO
Takwana is a seasoned Zimbabwean entrepreneur, rebellious marketer and innovator. He founded and grew Senditoo, a disruptive fintech company that offers money transfers and mobile recharge worldwide.

Tawanda Chitapi - Co-Founder
Tawanda is a software engineer and developer, who has worked for leading tech companies. Innocent is a former Merrill Lynch investment banking analyst and Macquarie M&A/Equity Capital Markets dealmaker.

Dr Duarte da Silva 
Dr Duarte is a highly accomplished investor and businessman, who has held senior positions at McCarthy Bank, Macquarie Africa and First South Securities. He has advised on transactions worth more than US$5 billion, with a particular focus on infrastructure, SA Equities, banking, and managing an investment portfolio of almost US$2 billion.

Tony Friend
Tony is a former investment banker who has worked for several leading financial institutions. He has extensive experience in corporate finance, strategic corporate communications and investor relations.

Hussein Omar
Omar has been involved in the development of banking platforms such as Revolut and Monzo.

Jamboo vs Other Neobanks

Neobanks are a type of digital-only bank that offers financial services primarily through mobile and web applications, with little or no reliance on physical branches. They have seen a surge in growth year on year since the 2010s.

Some of the neobanks in Europe include Revolut, N26, Monzo, Starling Bank, Bunq, Curve and Wise. They all have different value propositions, target markets, features, and pricing plans.

However, none of the neobanks offer African investment opportunities. That is where Jamboo jumps out of the digital pack - founded by Africans, for the African diaspora, to meet African needs.

Jamboo has a unique and differentiated value proposition that caters to the specific needs and aspirations of African migrants. It is the only digital bank that focuses on enabling its customers to invest in Africa and make a positive impact on the continent.

Key Distinctions:

Neobanks have different target markets and customer segments. Revolut and N26 are more focused on travellers and ex-pats, Wise is more focused on international money transfers, Bunq is more focused on savings and sustainability, and Curve is more focused on simplifying and consolidating multiple cards and accounts.

The different features and benefits of neobanks appeal to different customer needs and preferences. Revolut offers stocks, crypto, and commodities trading, N26 offers metal cards and partner discounts, Wise offers bank details in 10 currencies, Bunq offers sub-accounts and zero CO₂ banking, and Curve offers cashback and smart rules.

Opportunities:

• Transaction value in the Neobanking market is projected to reach US$771.50bn in 2023.

• Transaction value is expected to show an annual growth rate (CAGR 2023-2027) of 18.75% resulting in a projected total amount of US$1,534.00bn by 2027.

• The average transaction value per user in the Neobanking market amounts to US$40.91k in 2023.

• In the Neobanking market, the number of users is expected to amount to 28.20m users by 2027.

• User penetration will be 27.8% in 2023 and is expected to hit 40.4% by 2027.

Our Analysis

Business model: As established earlier, Jamboo is a neobank that targets the African diaspora living in the UK and Europe. It offers its customers a range of banking and investment services that are tailored to their needs and preferences.

Jamboo's main value proposition is to enable its customers to invest in various sectors and projects in Africa, such as microfinance, infrastructure, and technology. Jamboo appears to have access to exclusive deals and opportunities that are not available to the ordinary migrant.

Jamboo's co-founders have extensive experience and expertise in financial services in Africa, the UK and Europe.

The revenue model is based on charging fees for its banking and investment services. We assert that Jamboo will most likely take a commission from the returns of its customers' investments.

Presently, the cost structure includes the development and maintenance of its technology platform, the acquisition and retention of its customers, the compliance and regulation of its operations, and the salaries and benefits of its staff.

Technology: Jamboo is a 100% digital bank that operates through a mobile app and a website. We believe Jamboo's technology platform is powered by blockchain, artificial intelligence, and big data:

• blockchain to create a secure and transparent ledger of transactions and investments, as well as to facilitate cross-border payments and remittances,

• artificial intelligence to analyze data and provide personalized recommendations and insights to its customers

• big data to identify and evaluate potential investment opportunities and risks in Africa.

Prospects: The demonstrated successes of pioneers like Nubank, Revolut and Monzo make Jamboo a smart bet.

There is a large and growing market potential, as there are millions of African migrants living in the UK and Europe, who also collectively send over $40 billion in remittances to Africa annually.

Jamboo has a competitive advantage over traditional banks and other fintech players, as it offers a unique and differentiated value proposition that caters to the specific needs and aspirations of the African diaspora.

Jamboo also has a strong and experienced team of co-founders, advisers, and partners, who have the vision, passion, and expertise to execute their strategy and achieve their goals.

Opinion

The Neobanking market is growing globally, driven by the adoption of digital banking solutions, expansion into new markets, and partnerships with traditional financial institutions. Factors such as convenient and accessible banking services, digital technology, changing consumer behaviour, lower costs and greater flexibility have contributed to the market's popularity. The market is expected to continue growing due to rising demand for digital banking services, increasing smartphone penetration and fintech infrastructure development.

AND THAT’S A WRAP